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Nitella [24]
3 years ago
14

(Externalities) Complete each of the following sentences: a. Resources for which periodic use can be continued indefinitely are

known as ____________ resources. b. Resources that are available only in a fixed amount are ____________ resources. c. The possibility that an open-access resource is used until the net marginal value of additional use equals zero is known as the ____________.
Business
1 answer:
Tamiku [17]3 years ago
7 0

Answer:

a. Renewable resources

b. Exhaustible resources

c. Common pool resources

Explanation:

a. Resources for which periodic use can be continued indefinitely are known as <u>renewable resources</u>. These refer to resources which can be reproduced and available over a period of time

b. Resources that are available only in a fixed amount are <u>exhaustible resources</u>. These refer to resources which are available at fixed quantity.

c. The possibility that an open-access resource is used until the net marginal value of additional use equals zero is known as the <u>Common pool resources</u>. These refer to renewable resources which can be accessible by everyone.

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4 years ago
Suppose that the risk-free rate is 5% and that the market risk premium is 7%. What is the required return on (1) the market, (2)
Nesterboy [21]

Answer:

1.

r market = 0.12 or 12%

2.

r stock = 0.12 or 12%

3.

r Stock = 0.169 or 16.9%

Explanation:

The required rate of return can be calculated using the CAPM or Capital asset pricing model equation. The formula for required rate of return under this model is,

r = rRF + Beta * rpM

Where,

  • rRF is the risk free rate
  • rpM is the risk premium on market
  • r represents the required rate of return

1.

The beta of the market is always considered to be 1. Thus, the required rate of return on market would be,

r market = 0.05 + 1 * 0.07

r market = 0.12 or 12%

2.

For a stock whose beta is 1.0, the required rate of return would be same as that for market. So, the required rate of return for a stock with a beta of 1.0 is,

r Stock = 0.05 + 1 * 0.07

r Stock = 0.12 or 12%

3.

The required rate of return for a stock with a beta of 1.7 is,

r Stock = 0.05 + 1.7 * 0.07

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3 0
3 years ago
In 1915, peter oberweis started selling his excess milk to his neighbors. by 1927, he decided to start a more formal business so
Alexandra [31]
During the sales era of marketing. 

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Answer:

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